The environment surrounding the revelation of Nintendo's new console is more favorable than ever, and expectations are high that this year will finally bring official news about the successor to the Switch. Not only is the industry preparing for it, but the stock market has propelled the shares of the Japanese company to new heights.
Switch stocks reach an all-time high in Japan
According to a report from Nikkei (via VGC), Nintendo's stocks reached an all-time high of $54 USD on the Tokyo Stock Exchange, resulting in a market value for the company of $69 billion, figures not seen since 2007 when the Nintendo Wii took off to become one of the most successful consoles in history and a leader during its generation.
The price of Nintendo's shares was positively influenced by the expectation surrounding the official announcement of the Switch's successor, as it is believed to be the right time for the Japanese company to unveil the new console.
The stock market expects news of Switch 2 this year
Likewise, the stock market reacted positively to Nintendo's plans to expand its business into other sectors, such as the film industry with the Super Mario Bros. movie and the project with Sony for the live-action film of The Legend of Zelda. In this regard, there is confidence in the market regarding Nintendo's success outside of gaming.
On a third level, there is speculation in the Japanese market about the investments from the Public Investment Fund of Saudi Arabia (PIF), as petrodollars are expected to flow more abundantly to several Japanese companies that have entered agreements with Middle Eastern funds. In the case of Nintendo, a similar scenario may unfold, considering that the said fund holds 8.58% of the total shares of the Japanese company.
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